Pablo:
Roll you car in gear to line up the TDC line "OT" on the flywheel with the straight edge of the viewing port in the bell housing. Pull the valve cover and verify that both the exhaust and intake Cam lobes of #1 cylinder are not engaging the rocker arms and pushing the valves open, (this is TDC on the compression stroke). Now is also a good time to verify that the line on the front of the cam is lined up with the oil bar. If it isn't lined up, your cam is not installed properly and your timing will be off. You will need to pull the upper cam chain sprocket, stick 2 bolts in the front of the cam and use a screw driver to turn the cam so the line on the cam lines up with the oil bar, then re-install the cam chain sprocket.
Re-install the valve cover and tackle the distributor. I would suggest installing the 123 distributor. If you have completed the first step, the motor is now in TDC on the compression stroke and installing the 123 distributor should be easy. You basically can stab it in the distributor housing in any position, but I usually have the rotor pointing to the front passenger side of the engine compartment when it engages with the distributor drive gear. The rotor will be pointing at the #1 position, install the cap and plug in the #1 sparkplug wire with the cap terminal that lines up with the rotor. Continue clockwise with #3, #4, and #2 sparkplug wires. After the electrical connections are made, follow the 123 distributor directions to turn the distributor to get the "Green" light in the distributor housing, (this synchs the distributor to TDC for programming you advance maps). Use your bluetooth 123 app on your phone to build a starting advance Map using the Blue Book figures for the Tii, see attached. After starting the engine, you need to use your timing light to verify that the advance values in your map match the values your motor is producing, (say your map has 15 degrees BTDC at 1000 RPM, then set your RPM to 1000 and use your variable timing light to verify the the motor is 15 degrees) If it is, all good, if it isn't, you need to turn your distributor body back and forth slightly until the advance is 15 degress BTDC at 1000 RPM.
If it is still running poorly, time to move to the fuel side, because your ignition should be solid.
Mark92131